Unanticipated Money Growth and Unemployment in the Philippines
The Philippines has had high levels of unemployment for years. During the 2000s, the unemployment rate hovered between seven and ten percent. High unemployment can have adverse effects on individuals and society. The question that this paper analyses is how unanticipated money growth affect the unemployment situation in the Philippines. There has been literature on the relationship between unanticipated growth on the money supply and unemployment. The paper proposes that only unanticipated money movements will affect real economic variables like unemployment and the output level. In order to test our hypothesis, it is important that we need to quantify the concepts of anticipated and unanticipated money movements. This paper uses time-series data on several economic variables as well as a model based on Geetha et al. (2023). Using an error-correction model, the results show that an unanticipated increase in M2 money is a factor that contributes to unemployment in Philippines.
Copyright© 2024 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
Patalinghug, J. C. (2024). Unanticipated money growth and unemployment in the Philippines. Journal of Applied Economic Sciences, Volume XIX, Fall, 3(85), 267 – 276. https://doi.org/10.57017/jaes.v19.3(85).03
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